Well what can I say, it's been too long since we last wrote. It seems that summer gets crazy and time gets away from us. I decided to share with you the "time out" I took in Colorado this past month. We were very fortunate to have been given the opportunity by my cousin Jenna (She's like a sister to me) and her husband's family the Walker's, to see as what I think is the most beautiful part of Colorado.

It's always nice to get away but this is really getting away where no cell phone or e-mail could ever be used. To say the least roughing it on the Green River. I have never felt to small but so content. It's nice to have life put back into perspective by appreciating the best things in life. Life, So simple......

"One of Our Vessel's"

"The Gang"

and of course the view!

Thanks Guys!!!! Your the best!!!!!!!!

It's been awhile!

Well it must be picking up since we have not had the time to post latley. It seems like a little more work getting the properties closed in this market, but they are definatley selling. It seems that every year 4th of July hits and people start to take more vacations and realize that summer is getting closer to an end. This is a normal slow time in the market.





-On a more personal note, we had decided to take a family vacation camping. (Yes, Mary does camp!) It was a much deserved rest for the family and good to get together.

Now that we are back and refreshed we are ready to go! If you've read the papers lately

you are possibly worried about your biggest investment. If you are not selling at this time you

have nothing to worry about. If you bought 4 or more years ago you are more than likely still okay provided you didn't but a town home. The town home market has sunk deeper than the

single family home. When you read a 13 - 14 % decline in home prices you should take into consideration that the averages include a mix of townhomes and single family homes.

If you are really concerned call us and we'll be happy to do a market analysis of your home.

This is the latest - If you are an FHA buyer who wants to use the gift program for your down payment you may want to know that in September that program will go away. At that time you will be required to put 3% of your own money into the property. You will be able to get a gift from family however, but most of you do not have parents who give you downpayments.
So the bottom line is to buy sooner not later.
Any questions please call and we can help you figure it out.
Have a geat week!!!!

Is Summer Every Going to Come?

Is the weather taking it's que from the real estate market or is the real estate market taking it's que from the weather? Right now both are a little cool. We know that eventually we'll be talking about how hot it is outside and ask ourselves why we didn't trust the process. Summer comes
every year - sometimes rather slowly but it does come.

The same with the real estate market. I can speak from experience that eventually the market
will turn around and the value of homes will rise. Just take a look back in history.
When I started my career out of high school as an abstract clerk ( typing the title entries
into the abstract of title) I would find interest rates as high as 12 and 13 percent way back in the
late 1800's and into the 1900's. Interest didn't stay at those rates. The rates varied according
to supply and demand. I also remember in the 1960's (now I'm dating myself) how our office
crew did every kind of cleaning job and eventually played cards at work because we were not
busy enough. (That's when a boss was concerned about laying anyone off because he knew he
would be causing a real income problem for families.)
Not only did this happen in the early years it happened in the early 1980's too. Interest rates
were at 13 to 15 percent and the people buying were transferees and those who could
afford the high rates. At that time you could not lock in on an interest nor could you get a loan
approved in less than 60 days. You actually had to have a down payment to get a loan. Everything was done manually. We had no fax machines, no
internet and no text messaging. Can you believe we got anything done?

Today we can lock into an interest rate as soon as you have a purchase agreement, you can
be pre-approved for a mortgage before you start looking and you can have the seller
pay up to 6% of your closing costs. How bad is that?

It's not bad. What are we complaining about? So interest rates are at 5.875% to 6.125%
We can get pre-approved and we can still put only 3% down. Not only that, FHA
loans are assumeable!!! This is a great time to buy. The price of homes are at the lowest
level that they have been in years. There is still an abundance of homes on the market.
So what if you take a hit on the house you are selling. You can make it up on the house you
are buying.
Remember - tomorrow is a new day. Just as the weather changes so does the market.

Timing Is Everything!

How much in this world can any one individual really control?

We try to buy gas when it is at its lowest for the week.
We try to buy the bargains at the grocery store when they are on sale.
We try to purchase stocks and mutual funds at the low end rather than the high end.

Can we really time the market? Rarely!

What we try to do is to watch the gas prices,the grocery prices and of course the
stock market. We do our homework. When gas comes down and we need gas we don't wait
for it to go even lower unless we plan on staying home until it does.
We use coupons to buy groceries to save even more and we buy stocks and mutual funds
as they are going down. We do all these things knowing that they could go still lower,
but when we need groceries, gas or we need to put money into retirement
accounts we can't wait for the time to be exactly right. It is an unknown.
No one can predict if and when we will reach the bottom.

When we need a place to live we have the same options - we can wait for houses to
go lower. We can sit in an apartment or rental house, continue paying rent (helping
someone else pay for their property) or we can tell ourselves that the market
looks good today and if I purchase now I'll get a good buy. I'll have a place to live,
I'll get a deduction for the interest and property taxes on my income tax return and
I'll gain equity for the future.

An agent who knows what they are doing can show you how owning your own home
can be a good investment even if it doesn't appreciate in value for a couple of years.
Kari and I are willing to start from the beginning and help you understand whether or not
this is the right time for you to purchase a home.

We have sellers who are motivated to sell, we have foreclosure properties and
we have builders willing to work with you to construct a new home.

We are here to help you understand this market and to work with it, not against it.
Remember - You make your money when you buy - Not when you sell.
You Can Buy Right With The Help Of Mary and Kari.
Call Us - We'd Love To Help!

Signs That The End Is In Sight (Blah Blah Blah)

Just an FYI I have been talking to lots of Contractors and People in the Home
Building/Buying Business.
The concrete contractors are saying that they are doing more bids than they have in a long while.
The builders (at least most of those I talked to) are going to have work this year.
More people are doing loan applications and pre-approvals.

Now, how can that be anything but good news?

We can't expect everything to go back to where we were a couple of years ago, but we can
expect the market to start to stabilize throughout this year. I really am a realistic person and
realize that we have far surpassed a normal appreciation for the past 10 years.
Once we've stabilize then you can expect appreciation to start upward.

Will it be next year? The year after? If I could tell you that I'd be looking at property in
Hawaii. No one can predict the future. But we know that lumber prices haven't
dropped very much.

Our biggest problem right now are the multitudes of foreclosure properties and
the over supply of townhomes and condos.

If the government steps in to help out those in trouble with their mortgages and the
lenders are required to help these people, then we will see the bottom much sooner.

My suggestion:
1. If you are going to refinance or even look to buy call Kari and me first.
We understand the mortgages that are out there and we can direct you to lenders that
we use and trust.

2. If you would like a list of all the foreclosures in the Hastings area just e-mail us or call
us at : karistorkamp@edinarealty.com - 651-470-0709
marymurphy@edinarealty.com - 651-353-9838

Persistence Pays

Today we closed on a house that was one of the most rewarding closing I can remember in awhile. The buyer is a single Mom with 2 dependent children. She has been trying to purchase a home for at least 18 months. She did find one in Red Wing about 8 months ago and because of the changing market and a poor loan originator she did not get the loan. This happened at the last moment when she had already given her notice and was to be out of her apartment by the 1st of the next month. A friend of hers
suggested she contact Margaret Swanson with Lake Area Mortgage. The buyer met with her and started the process to purchase. This included raising credit scores, establishing that she had enough self employment income and other things that needed to be established prior to her even looking for a house. The buyer then called me approximately 6 months ago and we started looking for homes under $110,000.
That was challenging to me also. We would look for homes because this buyer wanted a yard for her grandchildren. We checked in Red Wing and Hastings. I was working with Margaret to understand the programs she was going to use. This lady combined about three different programs and came up with a zero down loan. I couldn't believe it.
The first thing was a decent credit rating (which she helped with). Then Margaret
used a CASA program thru MHFA. She obtained a Grant thru AHP alloted thru
Lake Area Banks + she received a monthluy payment assistance thru CASA also.
Margaret Swanson of Lake Area Mortgage you are the HERO of the month.
The Buyer now owns her very own single family home with a yard and at a payment
she can afford. We found her a home for $105,000 (by the way it had all new plumbing,heating,cabinets and flooring) that would not nickle and dime her to death and one
that she is proud to own.
Today is the best day ever because we could help this buyer.
Congratulations Maggie. AND
Thank you Margaret.

If you are a struggling buyer or a buyer who will breeze through the loan process call
Mary and Kari and we'll hook you up with Margaret.
Have a great week!
Smiles

Negative News follows Asset Bubble?

Despite the downturn in housing we should think in positive terms:i.e.
1.Downturns in the economy provide people with many opportunities to make money.
2.For Buyers the timing could not be better. With many opportunities to
purchase homes that are either in foreclosure or finding a motivated Seller
who must liquidate to move to another job this is the time to buy.
3.Most of your top investors buy low and sell high. You can be one of them.
4.In a short period of 5-6 years most Sellers saw their home value increase
from 45-85%. The normal for a time period in all the past years has been
4-5%. I'd say that we homeowners should under normal circumstances have
seen our home values go up only 25%. So what's the big deal! Yes we have lost
some of our gain, but look what the stock market has done over the past months.
We have had huge gains in the stock market too. So if these two markets level
off a bit have we really lost any money? Not to mention that we needed a place to
live, we received a tax deduction and we don't have to pay capital gains tax
on our profit up to a certain amount. We are still making money on our homes.

Do we really have a c omplaint? Maybe if you bought in the past 3-4 years.
The rest of us should count our blessings.
So we won't make as much as we once would have. We can't go back 2-3-4 years and
sell our stocks either.

It's time to be realistic and remain positive. This market will not last.
When we look back over the long run we'll clearly see the positive.